REGULATORY UPDATES
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Senate Extends Hemp Deadline as Industry Seeks Federal Regulation
by KYLE SWARTZ
The booming hemp-derived THC beverage industry received a bit of good news in August. The U. S. Senate voted on Aug 8 to pass a continuing resolution that includes a one-month extension of the federal compliance deadline for non-synthetic hemp cannabinoid products, moving the date from Nov. 12 to Dec. 11. The extension gives Congress additional time to consider federal hemp regulations before the new deadline.
Thomas Winstanley, president of Edibles. com, part of Edible Brands, said the Senate vote gives Congress more time to develop a long-term regulatory framework.
“ Congress did not solve the hemp issue today. It preserved the opportunity to solve it correctly,” Winstanley said.
“ Today’ s vote prevents the unintended consequences of an unnecessary and short-sighted prohibition that would have increased consumer risk by driving demand toward the illicit market while undermining an American industry that supports farmers, manufacturers, retailers and millions of adult consumers.”
Winstanley said the extension provides additional time to establish a national framework focused on regulation rather than prohibition.
“ This extension gives Congress the time needed to establish a durable national framework built on consumer safety, responsible commerce and meaningful enforcement,” he said.“ The industry has consistently aligned around these principles, and today’ s outcome reflects the growing bipartisan consensus that regulation— not prohibition— is the right path forward.”
He added that the Senate action resulted from bipartisan and bicameral efforts.
“ This progress is the result of bipartisan, bicameral leadership and elected officials who listened to consumers, businesses and the Administration,” Winstanley said.“ A delay is not a destination. It is the time needed to finish the work Congress has committed to, and we look forward to working alongside policymakers to get it right.”
Meanwhile, Nowadays CEO / cofounder Justin Tidwell said the Senate vote represents one of several positive developments for the hemp beverage industry.
“ These past two weeks represent a meaningful milestone for the hemp beverage industry, as we’ re seeing multiple positive signals come out of Washington at the same time,” Tidwell said.
“ The Senate not only voted to extend the current federal framework, providing the industry additional time to work toward a long-term solution, but we’ re also seeing lawmakers advance legislation like Representative Van Duyne’ s Hemp-Derived Beverage Regulatory Clarity Act, which provides a thoughtful roadmap for how hemp beverages could be regulated within the traditional three-tier system.”
Tidwell said the developments indicate that the federal conversation around hemp beverages is increasingly focused on regulation.
“ While there is still significant work ahead, these developments suggest the conversation in Washington is beginning to shift from whether hemp beverages should exist to how they should be responsibly regulated,” Tidwell said.“ We believe that’ s an important and encouraging change for consumers, retailers, and the industry as a whole.”
The Hemp Beverage Alliance( HBA), a trade association representing 375 hemp beverage companies in the United States and Canada, also supported the extension.
According to the HBA, the measure would temporarily delay a federal prohibition on the manufacture and sale of hemp beverages while Congress considers a longer-term regulatory framework.
The association pointed out that businesses across the beverage supply chain, including craft brewers, wine and spirits distributors and liquor retailers, have entered the hemp beverage category. It also said states with hemp regulations have generated tax revenue from legal sales.
The HBA recently released an industry report that found hemp beverage sales have grown 133 %. The association said a federal regulatory framework could support additional growth in the category.
The Senate action gives the industry an additional month to seek a longer-term federal solution, but the Dec. 11 deadline remains in place unless Congress takes further action.— KS
Seedsman Expands Cannabis Clone Program Across U. S.
Seedsman has expanded its cannabis clone program, offering rooted cannabis clones directly to consumers across the United States as the home cultivation market continues to grow.
The company, which has operated primarily as a cannabis seed retailer, said the expanded program gives home cultivators access to rooted clones sourced from female mother plants and tissue-culture propagation programs.
The move comes as more states permit home cannabis cultivation. Adultuse home cultivation is now legal in 24 states and Washington, D. C., while several additional states allow cultivation for medical cannabis patients.
Seedsman said the program addresses demand from home growers seeking alternatives to growing from seed. Clones are genetic copies of established plants and allow cultivators to bypass germination and early seedling stages.
“ For many cultivators, the journey begins with a seed, but it certainly doesn’ t have to end there,” said Tom Raikes, founder and CEO of Seedsman.“ Our new clone program is built on the philosophy that‘ where every grow begins’ matters. Clones offer a more consistent foundation, supporting steady growth through every stage. By skipping the germination process, cultivators can start growing faster and reach the harvest finish line weeks sooner. We are thrilled to offer this accelerated, reliable pathway to our community, reinforcing our commitment to being a complete cultivation partner.”
The company said its clone selection includes strains chosen for factors such as yield, flavor and resilience.
For new cultivators, clones can eliminate the need to identify plant sex during cultivation. Because the clones originate from female mother plants, growers can focus resources on flowering plants rather than removing male plants later in the cultivation cycle.
Seedsman also said clones provide a way to maintain genetic consistency across successive grows. Because each clone shares the same genetic makeup as its mother plant, growers can replicate specific cannabinoid profiles, aromas and flavors. The company noted that consistency can benefit medical cannabis patients seeking predictable results and home cultivators looking for uniform plant development.
According to Seedsman, plant health and sanitation standards play a central role in the program. The company works with suppliers that use testing protocols, hygiene measures and tissue-culture propagation methods. Tissue culture involves growing plant material in sterile laboratory conditions before plants enter cultivation environments.
Seedsman also recommends that growers quarantine newly received clones before introducing them into existing grow spaces to reduce the risk of pests or pathogens.
The company said clones ship under provisions of the 2018 Farm Bill through independent suppliers and typically arrive within three to seven business days. Customers can select from a range of available strains and receive rooted plants ready for acclimation and transplanting.
The expansion marks a broader effort by Seedsman to serve home cultivators through both seed and clone offerings as participation in home cannabis cultivation continues to increase across legal markets in the United States.— KS
Southern Bloom Acquires Red White & Bloom’ s Florida Cannabis Operations
Southern Bloom Botanicals has acquired the Florida cannabis operations of Red White & Bloom Brands in a transaction that closed July 14. The Florida Office of Medical Marijuana Use( OMMU) authorized the transaction and approved the change of control for Red White & Bloom’ s licensed Florida operations.
Red White & Bloom is a publicly traded cannabis company with operations in Canada and the United States. The company’ s Florida operations are now part of Southern Bloom Botanicals following the acquisition.
Ballard Spahr’ s Mergers and Acquisitions Group advised Southern Bloom on the transaction. Partner Ryan J. Udell and Counsel Adam J. Chelminiak led the M & A team.
Partner Catherine M. LaGrange and Associate Melissa Rezzag of Ballard Spahr’ s Commercial Finance Group advised on financing matters. Senior Counsel John J. Eagan of the firm’ s Tax Group advised on tax structuring.
The transaction required regulatory approval from Florida’ s OMMU as part of the change of control of the licensed cannabis operations.
Florida operates a medical cannabis program overseen by the OMMU, which regulates licensed businesses involved in the cultivation, processing, transportation and dispensing of medical marijuana.
Ballard Spahr is an Am Law 100 law firm with more than 750 lawyers across 19 U. S. offices. Its practice areas include transactions, litigation and regulatory compliance.— KS
Lawmakers Introduce Bill to Regulate Hemp Beverages Through Alcohol System
Reps. Beth Van Duyne( R-TX) and Greg Landsman( D-OH) on Aug. 10 introduced legislation that would regulate hemp beverages through the existing federal alcohol regulatory system
The Beverage Regulatory Parity Act comes two days after the Senate passed a continuing resolution that would delay a federal prohibition on certain hemp products from Nov. 12 to Dec. 11. The House of Representatives still needs to approve the measure.
The Hemp Beverage Alliance( HBA), which represents 375 hemp beverage companies in the U. S. and Canada, supports the legislation.
“ The Hemp Beverage Alliance strongly believes the beverage category should be regulated like alcohol. This legislation does exactly that,” said Christopher Lackner, founder and president of the Hemp Beverage Alliance.“ We look forward to working with Representative Van Duyne and Representative Landsman to pass this legislation this year.”
The Beverage Regulatory Parity Act would establish labeling and testing requirements for hemp beverages along with marketing and advertising rules. The bill would also require hemp beverages to contain only naturally derived cannabinoids and limit sales and consumption to adults 21 and older.
“ I’ ve heard directly from people across North Texas who consume hemp-derived beverages, and businesses who sell them, that they need clarity, not a ban that pushes this market underground,” Van Duyne said.“ The Beverage Regulatory Parity Act brings long-overdue certainty to the industry by regulating these beverages with the same proven structure that has successfully governed alcohol for decades.
“ I am glad to introduce this bipartisan legislation alongside Rep. Greg Landsman, because American families and responsible businesses deserve structure and sensible regulations that protect children while allowing adults to choose beverages they prefer.”
The bill focuses specifically on hemp beverages and could complement legislation addressing other hemp-derived products.
The proposed framework would use the three-tier alcohol distribution system, which separates suppliers, distributors and retailers. The HBA cited a 2025 Center for Alcohol Policy report that found four in five Americans agree the three-tier system serves consumers and the marketplace.
The HBA said businesses including craft brewers, wine and spirits distributors and liquor retailers have entered the hemp beverage category as sales of traditional beverage products have declined. The association also said states with hemp beverage regulations collect tax revenue from the category.
The HBA estimates the broader hemp industry at $ 29 billion and said its recent industry data report found hemp beverage sales increased 133 %. The association said a federal regulatory framework could support further growth.
The 2018 Agriculture Improvement Act, commonly known as the Farm Bill, removed hemp and hemp-derived products containing no more than 0.3 % delta-9 THC by dry weight from the federal definition of marijuana. Congress passed legislation in November 2025 that would change the federal definition and restrict certain hemp-derived cannabinoid products.
The Senate passed legislation on Aug. 8 to delay implementation of the hemp prohibition until Dec. 11. The House must still act on the measure.
The Beverage Regulatory Parity Act would establish a separate federal regulatory framework for hemp beverages while Congress considers broader changes to federal hemp policy.— KS
Safe Harbor Launches 401( k) Plan for Cannabis Industry Employers
Safe Harbor in May announced the launch of the Safe Harbor Retirement Plan, a pooled employer 401( k) plan designed for state-legal cannabis businesses and related service providers.
The retirement plan comes from SHF Holdings, Inc., which operates as Safe Harbor and trades on the NASDAQ: SHFS. The company provides banking, lending and financial services to the regulated cannabis and hemp industries.
According to Safe Harbor, the plan provides access to a 401( k) investment portfolio and uses collective investment trusts intended to support participation from cannabis-related businesses within applicable legal frameworks.
Safe Harbor said many traditional retirement plan providers do not support cannabis-related businesses, creating operational uncertainty for employers and employees. The company noted that some cannabis businesses have experienced retirement plan terminations or service interruptions that, in certain cases, resulted in early withdrawal penalties or tax consequences for employees.
The company said the Safe Harbor Retirement Plan aims to reduce the risk of service disruptions while supporting long-term retirement continuity for cannabis employers and workers.
The launch expands Safe Harbor’ s financial services platform for cannabis operators. The company currently offers employee banking services and workforce support through payroll and human resources operations, including its acquisition of 420 IT Solutions and partnerships with cannabis-focused payroll providers.
Safe Harbor said the retirement plan can support operators with both cannabis and non-cannabis business entities under a single plan. Companies that serve or invest in cannabis businesses may also participate. Safe Harbor said it will serve as the first adopting member of the retirement plan.— KS
Hemp Beverage Report Shows 133 % Growth
The Hemp Beverage Alliance( HBA) in July released what it says is the first independently verified wholesale sales dataset for the hemp beverage category, based on wholesale depletion data collected from participating brands during 2024 and 2025.
The report, The Future of Drinking: Hemp Beverage Marketplace 2024 – 2025, uses anonymized depletion data gathered by VIP from 26 participating brands. According to the HBA, the dataset represents a portion of the hemp beverage market but is the first to rely on actual wholesale depletion data rather than estimates.
The report examines national, regional and state-level sales trends during the two-year period.
According to the report, the hemp beverage industry recorded 133 % yearover-year growth. Total case equivalent volume increased from 692,435 cases in 2024 to 1,616,075 cases in 2025.
The report also found that products containing 6-10 milligrams of THC gained market share and surpassed products containing more than 10 milligrams of THC in 2025.
Sales patterns also mirrored those of traditional alcoholic beverages, with higher sales during the summer months and toward the end of the year.
“ While the category is still young, we are seeing indications of category maturation,” said Anna Edgren, director of operations for the Hemp Beverage Alliance and lead author of the report.“ Hemp beverages are no longer a novelty. Consumers are incorporating them into the buying patterns they currently follow for alcohol.”
The dataset includes information from suppliers that maintain active VIP accounts and belong to the Hemp Beverage Alliance. The organization said it did not require contributors to meet minimum thresholds for sales volume, revenue or operating history.
The organization also said hemp beverages have contributed to local economies as craft brewers, wine and spirits distributors and liquor retailers have added the products while sales of some traditional beverage alcohol categories have declined. It added that states with hemp beverage regulatory frameworks have generated tax revenue from the category.
The Hemp Beverage Alliance said the industry could face legal uncertainty later this year if Congress does not take action.
“ Unless Congress acts soon, this economic success story is going to end tragically, with job losses, bankruptcies, and defaults,” said Christopher Lackner, founder / president of the Hemp Beverage Alliance.— KS